PUERTO RICO TOURISM DEVELOPMENT ACT OF 1993

Under the La Concha Tower rental agreement your suite will become part of the Tourism Company and State Government Program which offers ten year tax incentives for residents of Puerto Rico for investment in new Condominium Hotels in order to promote tourism.

1. You are eligible for up to 90% tax exemption on revenue from your hotel residence.

2. You are eligible for up to 90% tax exemption on real property taxes (C.R.I.M.)

3. You are eligible to receive an investment tax credit equal to the lesser of 10% of the purchase price of your hotel residence (including furnishings) – or one half of the cash down payment.

4. You are eligible for 100% tax exemption of excise taxes and municipal construction taxes.

5. You may form a special owner’s partnership for investment in a Condominium Hotel residence at La Concha.

The above information is a summary of benefits, please consult with your tax consultant as to your own appreciation of these laws and special government incentives.